Now that we've had a bit of time to think about it, and watch...

Now that we've had a bit of time to think about it, and watch AJL go through the roof, has anyone made up their mind on whether 84c is justified? I personally am of the mind that it's worth weathering (and in fact might by more) due to the short term name of the factors affecting profit.

One plus that wasn't mentioned was that, because the downgrade was from Positron, it may mean a lower purchase price. Positron's price was said to be "calculated on a sliding scale, with the final amount calculated by reference to Positron’s EBIT during the 12 months to 30th June, 2008" (see 20 August announcement). RCR Electrical had earnings of 1.6M before tax for the first half, so it's possible that, although a there's an accounting loss flowing from Positron, economically their loss could be a nice gain for shareholders. We won't be able to know until the results are out...

Also, normally such contracts contain delay provisions, where the delaying party has to recompense the other for costs. It possible, then, that part of the Positron loss will be recovered (though won't flow through into the accounts as cash until next financial year).